Tata Steel reports consolidated financial results for the quarter and FY19

2019-04-25

Apr. 25, 2019 - Tata Steel reports consolidated financial results for the quarter and full year ended March 31, 2019.

Key Highlights: 

1. Health and Safety: Lost Time injury frequency rate per mn man hours worked of Tata Steel group reduced to 0.47 in FY19 

2. FY19 Consolidated steel production as well as deliveries jumped 17%YoY to 27.11 mn tons and 26.80 mn tons, respectively; India' production surged 35%YoY to 16.81 mn tons while deliveries grew 33%YoY to 16.26 mn tons

3. 4QFY19 Consolidated steel production and deliveries grew 27%YoY and 29%YoY, respectively; India' production and deliveries increased by 46%YoY and 55%YoY in 4QFY19, respectively

4. Consolidated revenues increased 27%YoY to Rs.157,669 crores in FY19 and 26%YoY to Rs.42,424 crores in 4QFY19

5. Consolidated adjusted EBITDA grew 55%YoY to Rs.30,734 crores FY19; 4QFY19 EBITDA increased by 33%YoY to Rs.7,814 crores as compared to Rs.5,857 crores in 4QFY18

6. India' adjusted EBITDA jumped to Rs.23,883 crores in FY19 and Rs.5,661 crores in 4QFY19

7. Consolidated reported PAT was Rs. 9,098 crores in FY19 and Rs.2,295 crores in 4QFY19 

8. The liquidity position of the group remains robust at Rs.15,284 crores comprising of Rs.5,937 crores in cash and cash equivalents and Rs.9,347 crores in undrawn bank lines

9. Gross debt decreased by Rs.8,781 crores during 4QFY19 

10. The Board of Directors recommended a dividend of Rs.13.00 per fully paid equity share and Rs.3.25 per partly paid equity share. 

Management Comments: 

Mr. T V Narendran, CEO & Managing Director: "Tata Steel continues to grow its footprint in India in terms of volumes, downstream capability and product portfolio. 

Our strategy of focusing on operational excellence, strong customer relationships, superior distribution network and brands is paying rich dividends. Despite subdued steel markets and weak growth in our key customer segments, this year our volumes in India grew by over 33% leading to a significant improvement in our overall profitability and cashflows. 

The proposed merger of Tata Steel BSL with Tata Steel will accelerate operational synergies and simplify our corporate structure. Our 5 MTPA Kalinganagar Phase II expansion will help us to further consolidate our presence in India and strengthen our financial performance. We are excited about the recently completed acquisition of the 1 MTPA steel business of Usha Martin which is an important milestone in our plans to grow our long products business. We continue to work closely with the European Commission on seeking approvals for our planned European steel JV with thyssenKrupp." 

Mr. Koushik Chafterjee, Executive Director and CFO: "2018-19 has been a strategically important year for Tata Steel with multiple challenges and opportunities including opportunities for implementing its long-term growth challenges. The Company progressed significantly on its goals in FY19 with strong operating performance, realignment of the portfolio towards India and achieving a significant deleveraging of its Balance Sheet. We will continue to target a further reduction in the gross debt by another one billion dollars by the end of Financial Year 2020. 

Tata Steel reported one of the highest ever consolidated adjusted EBITDA with a record growth of 55%YoY to Rs.30,734 crores and 27%YoY increase in revenues to Rs.157,669 crores in FY19. Consolidated reported profit after tax for the year stood at Rs.9,098 crores, which is a diluted EPS of Rs.87.74, representing a strong underlying performance of the company. On an underlying basis, this was a significant increase from the previous year's profits. The integration of the Tata Steel BSL with the parent is progressively very well and will be aided by the proposed merger.

In the fourth quarter, we reduced our consolidated gross debt further by Rs.8,781 crores. Despite the liquidity issues in the domestic markets, we were able to extend our debt maturity profile by successfully raising Rs.4,315 crores through 15 years non-convertible debentures and completing the long-term financing for Tata Steel BSL."